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MicroStrategy Adds Another 480 Bitcoin to Its Reserves Despite BTC Dropping in Value Again

MicroStrategy Adds Another 480 Bitcoin to Its Reserves Despite BTC Dropping in Value Again

The average price paid for Bitcoin by the software intelligence giant was $20,817 (roughly Rs. 16.5 lakh) per one BTC.

By Shomik Sen Bhattacharjee | Updated: 30 June 2022 17:41 IST

MicroStrategy Adds Another 480 Bitcoin to Its Reserves Despite BTC Dropping in Value Again

Photo Credit: Pexels/ Olya Kobsuseva

MicroStrategy has so far lost money on its Bitcoin bet but isn't stopping its accumulation spree

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Highlights

The price of BTC has sunk to an 11-day low below $20,000
MicroStrategy now holds nearly 130,000 BTC
MicroStrategy is not a stranger to betting on Bitcoin

MicroStrategy has bought more Bitcoin amid crypto market volatility spending a fresh $10 million (roughly Rs. 79 crore) on the cryptocurrency despite the value of BTC plunging to an 11-day low of just over $19,000 (roughly Rs. 15 lakh). The US-based business intelligence firm has now spent over $3.98 billion (roughly Rs. 31,440 crore) on Bitcoin, and owns 129,699 digital coins, according to statements from its CEO Michael Saylor. It is also at a loss of $1.3 billion (roughly Rs. 10,270 crore) since the price of the cryptocurrency has dipped.

As per a US SEC Form 8K filing, MicroStrategy purchased an additional 480 Bitcoin, at an average price of $20,817 (roughly Rs. 16.5 lakh) per Bitcoin.

MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTR https://t.co/leQYTXn817
— Michael Saylor⚡️ (@saylor) June 29, 2022

MicroStrategy now holds nearly 130,000 BTC (worth $2.61 billion or roughly Rs. 20,616 crore), which it acquired for about $4 billion (roughly Rs. 31,592 crore) at an average price of $30,664 (roughly Rs. 24 lakh). The company boasts the largest BTC stash of any public company by far; Tesla's is the second biggest with 42,902 BTC ($862 million or roughly Rs. 6,810 crore).

The price of Bitcoin currently stands just under $20,000 (roughly Rs. 15.8 lakh) — 70 percent lower than its November all-time high of nearly $69,000 (roughly Rs. 54.5 lakh), per CoinMarketCap data.

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MicroStrategy's Chief Technology Officer (CTO), Phong Lee last month told shareholders that if the price of Bitcoin dropped below $21,000 (roughly Rs. 16.6 lakh), the company would face a margin call on a $205 million (roughly Rs. 1,620 crore) loan that it took out in March to buy more BTC. A margin call in MicroStrategy's case would have potentially meant forced selling of its Bitcoin holdings to prevent further losses to shareholders. But CEO Micheal Saylor doesn't seem worried by the ongoing crypto winter.

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Earlier this month, the MicroStrategy CEO took to Twitter to remind followers and investors that the company had "anticipated volatility and structured its balance sheet so that it could continue to HODL through adversity."

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